Part one: main types of contracts

1. Legal framework of employment in Italy

Employment relationships in Italy are mainly governed by:

• The Italian Civil Code, which contains a specific section on subordinate employment;
• The Workers’ Statute (Law No. 300/1970), as subsequently amended;
• Legislative Decrees (including the “Jobs Act”, Legislative Decree No. 23/2015 and Legislative Decree No. 81/2015);
• National Collective Bargaining Agreements (CCNL).

This framework defines both the structure of employment contracts and the limits within which an employer can terminate an employee.

2. Main types of employment contracts

Italian law provides several forms of subordinate employment contracts, the most common being:

• Fixed-term contracts;
• Open-ended (indefinite-term) contracts;
• “On-call” (intermittent) work;
• Apprenticeship contracts;
• Agency work (through temporary work agencies).

In addition, work may be performed on a part-time basis, which is not a separate contract type but a way of organizing working time below the standard full-time schedule.

3. Fixed-term contracts

3.1 Maximum duration and conditions

A fixed-term contract in Italy:

• Can have a maximum duration of 12 months;
• Can be extended up to 24 months only if one of the following conditions is met:
  • The specific reasons are provided by the applicable collective agreement (CCNL); or
  • in the absence of the provisions referred to in point (a), in the cases provided by the collective agreements applicable within the company, and in any event by 31 December 2026, for technical, organizational or production-related reasons identified by the parties; or
  • the employee is hired to replace another worker (for example due to maternity, illness, leave).

Fixed-term contracts may be extended up to four times within the overall limit of 24 months. Renewals are permitted subject to compliance with the statutory “stop-and-go” periods between successive contracts. Furthermore, as a general rule, fixed-term employees may not exceed 20% of the employer’s permanent workforce as of 1^st January of the year in which the hiring takes place, unless otherwise provided by the applicable CCNL.

The contract must be in writing and must specify the end date of the employment relationship.

3.2 Conversion and compensation

If a court determines that the statutory requirements governing a fixed-term contract have not been complied with, it may convert the relationship into an open-ended contract. In that case, the employer may be ordered to pay the employee compensation, typically calculated in monthly salary equivalents within a statutory range.

If the employee continues working beyond the contractual expiry date, the law allows for a limited “grace period” with an increase in pay. If this period is exceeded, or the overall maximum duration (generally 24 months) is surpassed, the relationship is deemed to be open-ended.

Fixed-term contracts are widely used because they offer flexibility, although they are subject to an additional social security contribution compared to open-ended contracts and to statutory caps on the percentage of fixed-term workers in the workforce.

4. Open-ended (indefinite-term) contracts

The open-ended contract is the “standard” form of employment relationship in Italy.

It must be in writing and must contain a set of mandatory information, including:

• Job title and description of duties;
• Classification level and category according to the CCNL;
• Starting date of the employment relationship;
• Duration of any probationary period;
• Salary amount and method/frequency of payment;
• Working time, place of work and holiday entitlement;
• Applicable collective bargaining agreement (CCNL);
• Notice periods in case of termination.

These information requirements apply to all types of employment relationships, including fixed-term contracts.

4.1 Probation period

The probation period allows both employer and employee to assess whether the employment relationship is suitable.

• Its maximum duration is generally set by collective agreements and may not exceed 6 months.
• During the probation period, the employee is usually entitled to the same salary level as other employees within the same classification level.

Termination during the probation period is easier for both parties. Outside such period, termination is subject to stricter legal conditions: resignation by the employee must be submitted electronically and with the agreed notice; otherwise, the party who terminates early normally owes an indemnity equal to the salary for the unworked notice period.

5. On-call work, apprenticeship and agency work

5.1 On-call work (intermittent work)

Intermittent work is a flexible form of subordinate employment where the worker makes themselves available to perform work upon the employer’s request in certain periods.

If the contract includes an obligation to respond to the employer’s call, the worker is typically entitled to an additional allowance (often around 20% of the pay set by the CCNL) on top of the pay for the work actually performed.

5.2 Apprenticeship

Apprenticeship is an open-ended contract with a strong training component, aimed at facilitating professional qualification and entry into the labour market.

Employers may hire apprentices within specific quantitative limits, usually based on the size and structure of the workforce. The regime combines work performance with structured training, partly at the workplace and, in some cases, externally.

5.3 Agency work (temporary work)

Agency work (somministrazione di lavoro) involves three parties:

• The worker;
• The employment agency (formal employer);
• The user company (where the work is performed).

Only authorized agencies may enter into such contracts. The worker must be granted the same basic working and pay conditions as comparable employees of the user company.

6. Part-time work

Part-time work can be agreed both in fixed-term and open-ended employment.

Key features include:

• Working time is below the full-time schedule (which is normally 40 hours per week under Italian law, though collective agreements can provide for a lower full-time threshold).
• The contract must be in writing and clearly indicate the distribution of working hours (daily, weekly, monthly or yearly).

The parties may agree on:

• “Elastic clauses”: allowing the employer to increase working time within certain limits; and
• “Flexible clauses”: allowing the employer to vary the time bands during which the work is performed

The remuneration and other rights of a part-time worker are generally proportional to those of a full-time worker performing similar duties.

Should you require any further information or clarification, please do not hesitate to contact us.

Andrea Russo